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Goldman futures VP caused $118 million loss on made-up, hidden trades, regulator says

Nov 09 2012 Stuart Gittleman, Compliance Complete

A former vice president at Goldman Sachs' futures commission merchant, or brokerage, division fraudulently fabricated and concealed trades from his firm and obstructed their discovery, the Commodity Futures Trading Commission said Thursday. Several months after the the trader, Matthew Marshall Taylor, left Goldman he returned to his prior firm, Morgan Stanley, and stayed until July 7, 2012, records of the National Futures Association, an industry self-regulatory organization, show. A CFTC complaint filed in Manhattan federal court alleged that Taylor hid the size, the risk and the potential profits or losses associated with the S&P 500 e-mini futures contracts position he made up and purportedly traded in a firm account. Taylor's trades and concealment resulted in realized losses of about $118,440,000 after Goldman offset and liquidated the position, according to the complaint. Ross Intelisano, a lawyer for Taylor, could not immediately be reached for comment, Reuters reported.

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